Five-day moving average trading method
(1) The stock price is too far away from the 5-day line and too much higher than the 5-day line, that is, the "five-day deviation rate" is too large, which is a short-term selling opportunity. Deviation rate can be sold, depending on the strength and size of individual stocks. Generally, the stock price is 7% to 15% higher than the 5-day line, which is on the high side and suitable for selling. If it is a bear market, the stock price is generally 7% to 15% lower than the 5-day line, which is suitable for short-term buying.
(2) If the stock price falls back and does not break through the 5-day line, it is suitable for buying when it starts again. Generally speaking, on the way up, slow bull stocks often don't break the 5-day line or the 10 line. As long as it is not broken, you can continue to hold positions in combination with the general trend and the fundamentals of individual stocks. If it is a bear market, if the stock price rises and does not break through the 5-day line, it is suitable for selling when there is another big sell-off and decline.
(3) If the stock price falls below the 5-day line and the 5-day line can't pass, you need to beware of chasing the quilt cover and pay attention to selling on rallies. If it is a bear market, if the stock price rises above the 5-day line and fails to break through the 5-day line callback, or the 5-day line falls below but stops falling, you need to beware of bargain hunting and repurchase.
(4) The stock price effectively falls below the five-day line, and generally falls to the 10 line or the 20-day line. If it falls to the 10 daily line, the 20th daily line stabilizes and the stock price restarts, you can make up the chips sold at a high level in a short time as appropriate to avoid being short. If it is a bear market, the stock price effectively rises above the fifth line, and generally rises to the 10 line or the 20th line. If it rises to near the 10 daily line and is blocked near the 20th daily line, and the stock price starts to fall again, you can sell the chips bought at the low level in a short time as appropriate.
These can be understood slowly. Novices should exercise by simulating stock trading before they are unfamiliar with the operation, find some experience from the simulation, and then apply it to actual combat when the effect is good to avoid some unnecessary losses. If you're really not sure, you can use A Niu Gubao mobile phone to stock up and follow the cattle people inside, which is much safer. I hope I can help you, and I wish you a happy investment!